Stossel in the Classroom

THE UNINTENDED CONSEQUENCES OF THE ETHANOL SUBSIDIES

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Ethanol subsidies have been promoted by leading figures in both political parties. However, recent research and analysis has been more critical of ethanol use. General Wesley Clark from Growth Energy argues for continuation and expansion of the ethanol subsidies. David Boaz of the Cato Institute argues against the subsidies. Ben Schreiber from the environmental group Friends of the Earth reveals that ethanol is now believed to be worse for the environment than oil-produced gasoline. The clip highlights two important unintended consequences of the ethanol subsidies: higher feed prices for ranchers and higher prices for food produced from corn and other grain products.SEGMENT 6 / MECA DVD